Quick-to-read HR news & insights
From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.
Employers that are part of the Health Transformation Alliance (HTA), a coalition seeking to “improve patient care and economic value,” will have access to primary care services from One Medical through a partnership announced on November 15.
One Medical, which is owned by Amazon, offers in-person and virtual care services; it currently operates more than 200 primary care offices across nearly 20 metropolitan areas. More than 8,500 companies offer One Medical as an employee health benefit.
HTA CEO Robert Andrews described the partnership as “a huge step forward to transform healthcare for the better, addressing the inefficiencies and costs that plague our system,” according to a statement provided by the organization.
The hope is that the partnership will improve the patient experience and health outcomes while lowering costs. HTA cited a study published in JAMA Network Open that found employees who used One Medical for their primary care incurred total medical and prescription claims that were $167 lower per month, on average, when compared to employees using other primary care providers.
“We are excited to partner with HTA, making it easier for more people to access One Medical’s in-person and virtual primary care services that have proven to drive down total cost of care and deliver health outcomes,” David Kabaker, VP of channel partnerships at One Medical, said in the statement.
Zoom out. The partnership highlights efforts by employers to expand access to primary care in hopes of lowering health costs.
Employers expect health benefit costs to rise by more than 5% on average next year, due to factors like high inflation, labor shortages in the healthcare sector, and the popularity of expensive new drugs like GLP-1s.
Virtual primary care is appealing to employers not only because it promises increased accessibility, but also potential short- and long-term cost savings, Guy D’Andrea, executive director of Catalyst for Payment Reform, told HR Brew earlier in November. Primary care physicians can work with patients to slow the progression of chronic conditions, which “improves patient quality of life, but also leads to lower long-term costs,” he said.
As such, more large employers like Walmart are starting to partner with virtual care providers on their benefits. The retailer, which piloted a virtual primary care program with Included Health in 2020, said it saw an 11% reduction in the total cost of care for employees who participated in the pilot.